Mike KazmierskiPresident & CEO

EDAWN’s Legislative UpdateFebruary 3, 2015

1

•EDAWN's Mission

• EDAWN's Progress

• EDAWN’s Focus Going Forward

• Regional Strengths And Challenges

• Economic Development Cooperation

• EDAWN’s Concerns

Agenda

2

H2

What Does EDAWN Do?Effective Economic

Development Program

- Attracts- Retains / Expand- Grows

Quality Jobs!3

H3

Three Legs Of Economic Development

4

Entrepreneurial / Startup Growth

Retention / ExpansionAttraction

H4

• Majority Of Customers Outside The Region• External Customers Add Wealth To Community

1. Tax Dollars & Wages Of Employees2. Investments Of Building / Equipment3. Generates Additional Jobs + Multiplier Effect4. Quality Jobs ($20.00 Per Hr + Benefits) 5. 90% + Of Jobs Filled By Existing Residents

EDAWN’s Focus“Primary” or “Direct” Jobs!

5H5

6

So How Is EDAWNDoing At Quality Job Attraction?

H6

EDAWN Assisted New Jobs 2008-2014(5 Year Numbers Based On Company Estimate)

7* 2007 – 2010 Estimate Based On One Year Numbers

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

7

5 Year Average

2014 Final 4,179(Includes Year 1 Tesla, 700)

WOW !

H7

5

6

7

8

9

10

11

12

13

14

1554% Reduction Since 2011 14.2% to 6.4% Unemployed Now 14,332

2002-2008 State Average 5.15%

8

Our Unemployment Rate Improving!

H8

Job Attraction Travel In 2014Jan CA Company Visits

Feb CA Site Consultants & Co Visits

Mar Dallas Site Consultants & Co Visits

Apr NC Site Consultants & Asset Mgrs

Aug Salt Lake City Site Consultants

Sep Chicago Site Consultants & Co Visits

Oct New York City Site Consultants

Nov Las Vegas International Trade Conference

Dec Tampa, FL Site Consultants

9

H9

Prospects Visits Per Month

0

3

6

9

12

15

2012 Ave 7.8

2014 Ave 10.9

2013 Ave 9.8

10

2011 Ave 4.2

H10

2014 Assisted ProjectsIndustry Company Jobs From HQ

Manufacturing Advanced Refining 12 NVDistribution Anixter 8 NVManufacturing Ashima Devices 100 CA YesManufacturing Beaverfit USA 25 UK YesManufacturing Cenntro Automotive 300 NJ YesService Clear Capital 400 CA YesManufacturing Cuco, LLC 15 CA YesService CustomInk 261 NVManufacturing Eaton's B-Line Business 49 NVManufacturing Flirtey 4 AUS YesManufacturing Fulcrum Sierra Biofuels 30 CAService Gensano 2 NV

H11

2014 Assisted ProjectsIndustry Company Jobs From HQ

Service Ghost Systems 150 NV YesManufacturing Harris Welding Supply 50 CA

DistributionIndependent Salon Services 10 CA Yes

ManufacturingJames Hardie Building Products 9 NV

Distribution Orest Express 30 ILDistribution Petco 150 CAManufacturing Real Spirit 50 CA YesManufacturing Rubber Enterprises 21 NV YesManufacturing Stitch N Print 40 GAManufacturing Tecno Displays 30 CA YesManufacturing Tesla (Year One) 700 CA

H12

2014 Assisted ProjectsIndustry Company Jobs From HQ

Service Whisper Jet 18 CADistribution To Be Announced 120 FLService White Rabbit 25 CA YesDistribution Zulily 1,000 NVManufacturing To Be Announced 30 CAManufacturer To Be Announced 30 OHManufacturing To Be Announced 25 OHManufacturing To Be Announced 15 TNManufacturing To Be Announced 300 NJ YesDistribution To Be Announced 20 PAManufacturing To Be Announced 150 INTotals = 34 27 New / 7 Expansions 4,179 13

H13

Types Of Companies Assisted in 2014

Distribution21%

Service17%

Distribution Manufacturing Service

Manufacturing62%

14

H14

Corporate Headquarters!• Jobs Are Quality Jobs: Higher Average Wage

• Help To Positively Brand Our Region: Meetings, Clients, & Identify Reno- Sparks As Their Home

• HQs Bring Corporate Philanthropy And Engagement:They Get Involved To Make Community Even Better

• HQs Bring More Economic ImpactGrowth Likely To Occur Here & May Encourage Others Like Their Suppliers To Operate Or Relocate Here

02468

101214

2011 2012 2013 2014

Headquarters

15H15

Tesla: Wow!

More Than JobsPuts Us on The Radar:

ManufacturingBusiness

EntrepreneursCreative Class

Research & Development Investors . . .

The Largest Deal In The U.S. In 2014

Changes Our Brand Overnight

H16

Prospects! (Very Likely)Industry Job Count HQ Confidence

Relocation State

Distribution 120 X Very Likely NYManufacturing 100 Very Likely TAIWANData Center 400 + Switch NV - ExpansionManufacturing 100 Very Likely CA/TXService 200 Very Likely CAManufacturing 350 X Very Likely WA

Totals 1,270 2Very Likely Means They Have Indicated They Have Selected Us Or Are In The Process Of Acquiring Real Estate

17Switch Critical To N. Nevada

H17

Industry Job Count HQ ConfidenceRelocation

StateService 500 Finalist OH

Manufacturing 1,000 Top Two ILDistribution 800 Top Two PA

Manufacturing 500 Finalist EuropeDistribution 50 Finalist MNData Center 80 Finalist TX

Manufacturing 500 Finalist NJ3,430

Hot Prospects! (Probable)

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H18

Attraction – Strengths & ChallengesStrengths: Strategic Location

Workforce AvailabilityCost Of Doing Business - TaxesBusiness Friendly Government Available Business Parks

Challenges: Increasing Cost Of EverythingAvailability / Quality Of LaborReno Downtown - ImageAvailability Of BuildingsAvailability Of Training Dollars

H19

Three Legs Of Economic Development

20

Entrepreneurial / Startup Growth

Retention / ExpansionAttraction

H20

Components to BR&E Program• Connect With Resources & Each Other

• Grow Jobs/Revenue/Visibility

• Fix Problems/Eliminate Roadblocks

• Retain/Recognize

• Support

• Think Local

21

H21

• Company Visits – 184• Growing 84• Future Growth 68 • Flat 29• Declining 3

• Seven Assisted Expansions = 1,340 New Jobs• Business To Business Connections Made = 36• Two Industry Sector Councils • 53 Companies In Existing Industry Awards• Issues Addressed = 25

Retention Results / Initiatives

83% Growing

22

H22

• Availability Of Specialized Workforce Resources- Machinists, Engineers, Industrial Mechanics,- Construction Trades, CDL Drivers, - Software Developers- Senior Management-Multiple Areas

• Employee Retention And Prospective Wage Increases Due To Increased Employee Demand

• Noise Concerns For Advanced Manufacturers • Speed / Support Of Government • STEM Education, CTE, National Career Readiness •

Major Concerns

23

H23

Three Legs Of Economic Development

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Entrepreneurial / Startup Growth

Retention / ExpansionAttraction

H24

Entrepreneurial Development Strategy

• Communicate: Highlight Reno’s Strengths As A Place For “Entrepreneurs With A Life”

• Catalyze: Engage Entrepreneurs To Lead Programs & Community Initiatives

• Connect: Facilitate The Connection Between Organizations, Entrepreneurs And Resources (Funding, Mentorship, Customers)

• Showcase: Highlight Our Startups & Entrepreneurs To Bring Visibility, Encouragement & Community Support

25

H25

Entrepreneurial Development Success!

Reno, NV (DEC. 15, 2014) Next City will host its sixth annual Vanguard conference in Reno, NV. Vanguard is an annual experiential urban leadership conference.

IEDC Award!

Entrepreneur.com on NBCNews.com

3 Alternative Tech Startup Cities With Less Traffic, More Housing (Infographic)

Three Western locales previously considered vacation destinations are now alternatives to Silicon Valley life at a much more affordable price.

3 Alternative Tech Startup Cities Three Western locales previously considered vacation destinations are now alternatives to Silicon Valley…..….

26H26

Entrepreneurial Growth & JobsSummit VMS Program

• Over 35+ Mentors (Angel Investors, CEOs, Executives)

• 14 Ventures – Actively Hiring Employees & Doubling Revenues

In 2014 The Reno Accelerator Fund Invested $200k Seed Funding In 8 Startup Companies (CDBG)

• To Hire Employees And Expand• Will Invest $200k in 2015

27

H27

“Biggest Little” Startup Community

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Reno – The Place For Entrepreneurs With A Life!

H28

EDAWN “Product Improvement”

• Attract Business / Employers To Downtown• Working With Partners To Establish “A Place”

For Entrepreneurs Downtown• Work With Partners On Air Service• Promote A Business And Quality Of

Life Message To improve Our Image

• Promoting A Vision For A Knowledge-Based Economy Embracing UNR As The Economic Engine Of Our Future

29H29

Diversified Business Marketing Campaign

Kids “Design A Taxi-Top

Campaign”WCSD To Submit

EntriesWinning Schools Get $1,000 And A

Taxi-Top 30H30

31

2014 Was A Great Year! The Best Year Ever For Job Attraction - Plus Tesla And Now Switch

But Are We Ready For Unprecedented Growth?

Can We Handle The Equivalent Of Three Tesla’s In Just 5 Years?

So Where Do We Go In 2015?So Where Do We Go In 2015?

H31

Tesla Only Part Of The Growth!Tesla

PrimaryTesla

SecondaryEDAWNPrimary

EDAWNSecondary

Total Jobs

2013 0 0 3,460 4,360 7,8202014 0 0 3,479 4,384 7,8632015 700 1,148 4,000 5,040 10,8882016 1,000 1,640 3,500 4,410 10,5502017 3,000 4,920 3,000 3,780 14,7002018 1,800 2,952 2,500 3,150 10,4022019 0 0 2,000 2,520 4,520

5 YearTotal 6,500 10,660 15,000 18,900 51,060

17,16032

H32

Our Growth Before The Recession

150,000

170,000

190,000

210,000

230,000

250,000

2.2% Growth

2014 Growth At 3.35%Without Tesla and With Many New Jobs Yet To Be Filled

33

H33

Explosive Growth Is Coming!

150,000

170,000

190,000

210,000

230,000

250,000Tesla Job GrowthEDAWN Job GrowthHistoric Employment

2.2% Growth

4.9% Growth

34

H34

Economic Planning Indicators Committee

• EPIC - To Identify Key Regional Impacts of Projected Rapid Growth (To Get Out In Front)

• Commissioned An Economic Impact Study Expert

• Key Partners , NNDA, GOED & Local Government

• Speak With One Voice On The Numbers / Impacts

• Provide A Coordinated And Realistic Assessment of The Impact For Planning And Legislative Use

• Complete By Mar 1st

35

H35

Updated Economic Development Stool

36

Retention / ExpansionAttraction

Entrepreneurial / Startup Growth

Community Development

Workforce Development

H36

Community Development

• Lead The Region’s Efforts To Plan For and Accommodate Growth (EPIC)

• Encourage / Facilitate The Redevelopment Of The Downtown And The Connection To UNR

• Attract Companies And Entrepreneurs To The Downtown

• Work With Partners To Improve Air Service• Improve The Region’s Fiber Connectivity• Plan For Long Term Industrial Land Needs

37

H37

Our Greatest Concern Workforce Development – Let’s Invest In Nevadans

• Assist In Attracting Workforce To The Region• Facilitate Development Of Training Programs For

Existing Workforce• Improve Connection Of Existing Primary

Employers With Education – Increase Internships• Continue To Rebrand Region - Earned Media

To Be More Attractive To Talent & Creative Class• Advocate Funding Increase To Train Workforce

Train Employees Now (TEN) Grants - Critical

38Our TEN Grant Needs Greatly Exceed Our Available Funds!

H38

Existing Workforce Training• The Primary State Agencies To Train Existing

Workforce Are The Community Colleges• We Have Significant Skills Gaps• Incoming Jobs Advanced Manufacturing – Tech• Funding Of CC’s Not Based On The Need• The Need Is Directly Linked To Incoming Jobs • Incoming Jobs Increase = CC Funding?• If Not Trained, Nevadans Will Watch Others Get

These Quality Jobs

H39

$50

$55

$60

$65

$70

$75

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$85

$90

$95

$100

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

N Nevada State Funding

College Of S. Nevada State Funding

$ M

If Funding Increases @ 4.9%; The Projected Job Growth

Huge Gap!If Funding Was

Increase d @ 1.6% Job Growth

Community College Link To Job Growth ?(Just Operating Funds – Capital Funding Has Gone  From $30M / Yr to $1.5M )

???

H40

WCSD Capital Funding Problem

• WCSD Is Years Behind In Infrastructure• Maintenance And Renovations Alone = $25M / Yr• $255M In New School Needs………Now• $0 In 2015 and Only $10M Available To Bond In 2016• Clark 42% Higher Property Tax & Other Funding -

WCSD .3885 / $100 Assessed Value Clark County .5534 / $100 Assessed Value

• WCSD Only District With No: Real Estate Transfer Tax; Construction Tax; Sales Tax Or Lodging Tax!

H41

Let’s Exacerbate The Problem• NRS 278.346 Requires The District To Buy Land

At Market Rate – Developers Can Donate Land• No Impact Fees For Schools In Washoe County• Let’s Add 562 Students…Just In 2014• Add 61,000 New Residents By 2024• Ballot Question: 4 Years If We Act Now!

• 2015: Legislature Approval For A Tax• 2016: Vote Of The People• 2017: Legislature Approve What Voters Supported• 2018: Start Collecting Taxes

H42

0

200

400

600

800

1,000

1,200

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Inflation / Cost of Bonds 7%New Schools By 2024: 3E; 1M; 1HS = $206MNew Schools By 2019: 4E; 1M; = 145MNew Schools Now: 1 E; 2 M; 1.5 HS = 255MMaintenance & Renovations

$ M

WCSD Capital Funding Crisis!

$900MGap!

Governor’s Extended Bonding Authority

H43

Portables Not The Solution!

WCSD Currently has 228 Temporary Portable Classrooms – Many Over 30 Years Old

H44

Let’s Invest In Nevadans:• TEN Grants To Attract Quality Employers• Fund CCs Based On Jobs Available• For K-12 Consider Options For Growth To Pay • Consider Interim Solution That Can Bridge The

Gap Until Bonding Authority Improves In 2024• Will Take A Real Fix Like ½ Cent Sales Tax Over

10 Years = $50m / Yr With Sunset ? $2 / Week!• Or Property Tax Increase – Not Likely• Work Together To Solve – Invest In Our Kids!

H45

Economic Development Agencies • GOED: Supportive / Engaged / Cooperative• NNDA:

• Shared Projects• Regional Effort To Support Entrepreneurship• Exchange Of Information• Routine Interaction

• LVGEA:• One Nevada – Encourage North / South Cooperation• Pass Projects That Fit Better In The Other Region• Attend Each Others Events• Routine Interaction

H46

Regional Public / Private PartnersCity of Reno UNR State Offices

City of Sparks TMCC Nevada JobConnect

City of Fernley DRI Nevadaworks

Washoe County The Chamber NNDA

Storey County WNDD NV Energy

Washoe County School District NCET Reno-Tahoe

Airport Authority

GOED RTC RenegadesDETR RSCVA Many Others !

47H47

Questions?

H48